The evaluation of social welfare as a factor of economic growth of Ukraine

The welfare has a direct impact on the consumption, the availability of tangible and intangible assets, the economy structure and other social and economic factors. The evaluation of the social welfare, its indexes and algorithms of calculation are in the focus of scientific investigations. The aim of the article is to evaluate the dynamics of the social welfare increase in Ukraine by the Zolotas model and its impact on economic growth. The dynamics of the social welfare increase by the Zolotas model shows the social welfare decrease despite of the country''s economic growth. The living standard of the population was evaluated on the basis of such factors as a minimum wage indexed to the price index and per-capita GDP according to the last year price indexes. The dynamic of per-capita GDP change related to the minimum wage correlates with the theoretical issues of the Zolotas model in conditions of low income. The welfare worsening decreases the real income and reduces the purchasing power. Economic growth does not necessarily promote welfare increase. It implicates the inequality reduction and growth, poverty and production increase that does not always benefit social welfare. The considerable income reduction restricts the usage of savings as a factor of economic growth. The investments into innovations will increase the capital value and ensures economic growth.